3 ms·
Minimum wage is a red herring. Everything other than unionization is a red herring. Countries with strong labor don't even need a minimum wage. Think about a pl
by 4death4 3y ago
Minimum wage is a red herring. Everything other than unionization is a red herring. Countries with strong labor don't even need a minimum wage. Think about a place you consider to have strong workers rights. You might think of northern European countries like Germany, Denmark, Switzerland, etc. Many are surprised to learn that these countries don't (or didn't until recently) have a minimum wage. In many ways, requiring a minimum wage is a sign that your labor pool doesn't have enough leverage at the bargaining table. Without bargaining power, management is always going to find a way to screw you.
- ETH_start 3y agoCountries with strong unions have stagnant wage growth. The spectre of any large worksites becoming unionized keeps significant amounts of manufacturing out of the US too. Increasing bargaining power is a Red Herring to convince the population to restrict people's rights to freely contract, for the benefit of unions. Everyone already has infinite bargaining power in a market economy, which is why the only negotiating leverage a prospective employer has to convince an individual to work for them is to offer them better employment terms. A society where voluntary interaction is not restricted by labor laws sees more rapid economic development, and with it, wage growth, which is why Hong Kong and Singapore massively closed the wage gap between them and the Nordic countries over the last 50 years.
- jakobson14 3y agoThis. It doesn't matter how much value you generate for The Company. If you don't have strong labour (eg. via unions) then there's absolutely no reason for a company to compensate employees fairly. Companies are not only happy, but DEFAULT to raising prices AND lowering wages. Max profit.